by Christine Morris

Created on: January 12, 2007   Last Updated: May 16, 2007

Well, you could win the lottery or inherit a big hunk of cash from a relative, but how likely is that? And if perchance one of those things should happen, how likely is it that you would be a millionaire long? No, if you want to be a millionaire and more importantly, stay a millionaire, it's going to require a little work. Yes, I know, a dirty word, but it'll get you further and faster than wishing.

First, I recommend you try The Compact. The Compact is a movement started by a California group in 2006. They vowed to go a year without buying anything other than food. They would take the radical step of USING WHAT THEY ALREADY HAD. If this seems too cold turkey for you try swearing off for a shorter period of time or one category at a time. If you are a big DVD purchaser, try going a year without buying a DVD. I think you'll find that there are fantastic alternatives to spending your own hard earned money on things you'll watch or use once. You can borrow from friends or the library for instance. One year without spending will not only gain you a lot in the debit column, it will teach you a lot of self reliance and creativity. And shopping in your own stuff may teach you what great taste you have. There is a very large Yahoo group for support and many, many local groups.

Second, and during your year, find yourself a good financial planning book. Personally, I like David Bach's Automatic Millionaire. In it he explains how to set up online banking and autopay options so that, without you ever having to think about it, suddenly you have money. You should also look into Domingues and Robin' Your Money Or Your Life which explains how to retire early. Very early. That alone can stiffen your spine to stick to The Compact. The info might be a little out of date, but most of it is still priceless. Another helpful book is The Millionaire Mind. It's more of a sociological study of millionaires, but you will be surprised at the results. You will be borrowing these books from the library.

Third, eliminate all debt as quickly as possible. Your Money Or Your Life will help you to set up a plan for that, explaining what to unload first. Then only incur secured debt. You know, buy a house. Cars are considered secured debt too, but they depreciate while houses only appreciate.

Following these steps will not make you a millionaire in a year (unless you happen to be earning over a million a year already) but over time the money will accumulate. After one year on The Compact, you will suddenly discover that many of your "life essentials" are not so essential. And once you aren't buying 4 or 5 DVDs a month or eating out 10 times a week or stopping for Starbucks daily, you'll find a lot more cash in your wallet and a lot more enjoyment in your life.

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